Initial Environmental Examination July 2011 VIE: Comprehensive Socioeconomic Urban Development Project – Viet Tri, Hung Yen, and Dong Dang (Dong Dang) Prepared by Provincial People’s Committee of Lang Son for the Asian Development Bank CURRENCY EQUIVALENTS (as of 01 June 2010) Currency Unit – dong (D) D1.00 = $0.000049 $1.00 = D20,298 ABBREVIATIONS ADB – Asian Development Bank BOD – biological oxygen demand CBMC – community-based monitoring committee COD – chemical oxygen demand CPC – city people’s committee DoNRE – Department of Natural Resources and Environment DOT – Department of Transportation EIA – environmental impact assessment EMD – Environmental Management Division EMP – environmental management plan EPC – environmental protection commitment GoV – Government of Viet Nam GMS – Greater Mekong Subregion IEE – initial environmental examination LEP – Law on Environmental Protection km – Kilometer km2 – square kilometer m – Meter MOLISA – Ministry of Labour, Invalids, and Social Affairs MoNRE – Ministry of Natural Resources and Environment NSEC – North-South Economic Corridor PMU – project management unit PPC – provincial people’s committee PPTA – project preparatory technical assistance ROW – right-of-way SEDP – socioeconomic development plan TA – technical assistance TSS – total suspended solids WU – Women’s Union NOTE In this report, "$" refers to US dollars unless otherwise stated. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. TABLE OF CONTENTS I. TABLE OF CONTENTS 3 II. EXECUTIVE SUMMARY 5 III. INTRODUCTION 7 A. Background to Project and IEE 7 B. Assessment Context 8 IV. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 9 V. DESCRIPTION OF THE PROJECT 10 A. General Description of Project Components (DD1 and DD2) 12 1. Pre-construction Phase 12 2. Construction Phase 12 1. Post-Construction Operation Phase 13 VI. DESCRIPTION OF AFFECTED ENVIRONMENT 13 A. Topography and Geography 13 B. Socio-economy 15 1. Border Exchange with China 16 C. Physical Resources 17 1. Climate 17 2. Soil Resources 17 3. Land Use 17 4. Mineral Resources 17 5. Water Resources 18 6. Water and Sediment Quality 18 7. Ground Water Quality 20 8. Air Quality and Noise 20 D. Ecological Resources 21 1. Fauna 21 2. Flora 21 3. Protected Areas and Wildlife 22 E. Conditions at Huu Nghi Gate, Dong Dang Market 23 VII. PUBLIC CONSULTATION 25 A. Stakeholder involvement during project implementation 26 VIII. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 27 A. Project Benefits 27 B. Project Impacts and Mitigations 28 1. Pre-construction Phase 28 2. Construction Phase 28 3. Operation Phase 31 4. Induced Impacts 31 5. Cumulative Impacts 32 6. Strategic Assessment 32 IX. INFORMATION DISCLOSURE AND PUBLIC GRIEVANCE MECHANISMS 32 A. Project Information 32 B. Grievance Process 33 C. Access Hotline 33 X. ENVIRONMENTAL MANAGEMENT PLAN 34 A. Institutional Arrangements and Responsibilities 34 B. Mitigation Plan 35 C. Monitoring Plan 46 1. Reporting 46 2. Estimated Cost of Mitigation and Monitoring Plans 46 D. Institutional Capacity Review and Needs 46 XI. CONCLUSIONS AND RECOMMENDATION 50 XII. REFERENCES AND INFORMATION SOURCES 51 XIII. APPENDIX A: PARTICIPANTS OF STAKEHOLDER CONSULTATION 52 Table 1. Summary specifications of project components DD1 and DD2 .............................. 10 Table 2. Summary of major generic activities of DD1 and DD2. .......................................... 13 Table 3. Total trade and passenger traffic across Huu Nghi border gate, 2005-2010 .......... 16 Table 4. Sediment quality in Ky Cung river .......................................................................... 19 Table 5. Water quality data in the Ky Cung river ................................................................. 19 Table 6. Ground water quality in Lang Son City .................................................................. 20 Table 7. Air quality in Lang Son .......................................................................................... 20 Table 8. Stakeholder comments on project in Dong Dang. .................................................. 25 Table 9. Applicable Laws, Directives and Environmental Standards. .................................. 30 Table 10. Environmental Impact Mitigation Plan .................................................................. 36 Table 11. Environmental Monitoring Plan ............................................................................ 48 Figure 1. Four branches of the North South Economic Corridor of the GMS ......................... 8 Figure 2. Huu Nghi border gate upgrade schematic (DD1). ................................................. 11 Figure 3. Rehabilitation of market drainage infrastructure schematic (DD2). ....................... 11 Figure 4. Huu Nghi border gate to China. ............................................................................ 14 Figure 5. Elevations along road to Huu Nghi gate along western side Ky Cung river. ......... 15 Figure 6. Existing masterplan for Huu Nghi border gate. ..................................................... 24 Figure 7. Air and surface water quality monitoring sampling sites. ...................................... 47 I. EXECUTIVE SUMMARY 1. Dong Dang of Lang Son province is one of three cities of the Comprehensive Socio- Economic Urban Development Project (CSUD) along with Hung Yen of Hung Yen province, and Viet Tri of Phu Tho province to be developed to ultimately join Ha Noi as northern Viet Nam's economic center. The outcome of the Dong Dang project is improved urban infrastructure, and improved municipal and international border services with the impact of contributing to the CSUD, and the overall transformation of the North-South Economic Corridor (NSEC) of the Greater Mekong Sub-region (GMS) from a transport corridor to full-fledged economic corridor. 2. The initial environmental evaluation (IEE) of the Dong Dang subproject was prepared as part of project preparatory technical assistance (PPTA) 7516-VIE. The IEE presented herein has been re-formatted and updated pursuant to the requirements of ADB’s SPS (2009). This category B project is at the feasibility design phase and defined by the following components: DD1: Upgrade of Huu Nghi Border Gate Facilities DD2: Rehabilitation of Dong Dang Market Drainage Infrastructure 3. The evaluation of the pre-construction, construction, and operational phases of the two Dong Dang components which included input from a community stakeholder meeting indicates that the direct environmental impacts of the project are mostly short-term civil construction- related that can be mitigated. The stakeholder meeting in Dong Dang indicated the need for effective management of noise, dust, traffic disruptions, and safety during the construction phase. A HOTLINE telephone number to a responsive project management unit (PMU)/city people’s committee (CPC) office posted at all construction sites is proposed to facilitate continued community engagement through the construction phase. 4. Available data and information from the Department of Natural Resources and Environment (DoNRE) indicate the absence of critical wildlife habitat, rare or endangered species, and ecological protected areas in the general area surrounding the Huu Nghi border, with no sensitive ecological or cultural receptors in the Dong Dang market area. This focuses the short-term direct impacts of the project on the local community and workers that will be affected primarily by construction activities. The civil construction impacts of elevated dust, noise, traffic disruptions, erosion and sedimentation, and public and worker safety can be mitigated and managed effectively with provincial, national, and international construction management directives and guidelines. 5. However, the presence or absence of sensitive ecological receptors right at the Huu Nghi border site should be confirmed with supplemental survey data. Similarly, the aquatic resources and uses of the Ky Cung river at the border gate site and adjacent to the Dong Dang market should be confirmed. These data and information should be collected as part of the update of the EMP during the detail design stage of the project. 6. Potential induced environmental impacts of the project are increased natural resource consumption and environmental degradation which could stem from the subproject impact of socioeconomic development in and around Dong Dang. These induced environmental impacts would potentially accumulate regionally with similar effects of the other two subprojects of the CSUD, along with other ongoing separate economic development projects of the region. Strategic-level environmental concerns of CSUD are normally addressed at the regional planning stage such as with the Government of Viet Nam’s (GoV) socioeconomic development plans (SEDP). 7. The IEE concludes that the project description at the feasibility design stage combined with available information on the affected environment is sufficient to understand the scope of potential environmental impacts of the project. Provided that major changes in the design of